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Planning, Research & Accountability
Andre Manning, Royal Philips
VPRA, Amsterdam, October 31, 2013
•
•
•
•

150 communications professionals around the globe
25 communications professionals at HQ Amsterdam
Supported by one agency across the globe
This is excluding marketing communications
People don’t
care what
you say
about your
company.

10
“Now it’s the people
who are taking
control.”
Rupert Murdoch, CEO, News Corp.

11
Everything Move Faster in Digital Economy
Critical success factors

14
Barcelona 2010 Principles
http://www.instituteforpr.org/2010/06/the-barcelona-declaration-of-research-principles/

1. Importance of Goal Setting and
Measurement :
2. Measuring the Effect on Outcomes is
Preferred to Measuring Outputs
3. The Effect on Business Results Can and
Should Be Measured Where Possible
4. Media Measurement Requires Quantity
and Quality
5. AVEs are not the Value of Public
Relations
6. Social Media Can and Should be
Measured
7. Transparency and Replicability are
Paramount to Sound Measurement
15
Barcelona Principles and Philips

• We set goals before we measure, before programs launch
– AVEs are not used, Neither are multipliers

• Impressions and clip counts are meaningless numbers on
their own
• Our objective is to show business results from PR
• Social media is treated as simply another channel, not a
strategy unto itself
• Everything we do is transparent and can be done over
again the same way

16
MEASUREMENT AT PHILIPS

17
Measurement at Philips

• Communications measurement has never been more important
to demonstrate the success of communications work.
• When I first arrived at my new role I saw putting in place a
comprehensive PR measurement system at Philips as critical.

• At Philips we hold ourselves to a consistent standard through
NPS scores and Key Performance Indicators (KPIs).
• Consistent Measurement is part of the 21st century toolkit of the
communications professional.
18
AUGUST 2013: OVERVIEW
August ’13
Total # of articles
Total # of impressions
Overall Quality (AMS) (from
-100 to 100)
Net Promoter Score (NPS)*
Message Penetration
(% with 2+ messages)
% Positive tone

*NPS is the conversion of overall quality (AMS) to a Promoter Score.
N/A means no data was available for the month.
Brand License refers to coverage related to Philips’ brand licensees.

July ‘13

Monthly Net Change (+/-)

276
274,901,000

498
513,121,000

-222
-238,220,000

54.9

69.3

-14.4

7.7

8.5

-0.8

42%

57%

-15%

68%

75%

-7%

19
Example Algorithm & NPS
AMS by Top Markets

• Benelux yielded the highest
volume of coverage in Q4 by far,
with a strong AMS.
• APAC and North America had the
best quality of coverage, higher
than the quarterly average.
600

80

• Algorithm scores ranged from
-70 to 100, the majority of
which passive or promoter
articles.
• Conversion to NPS would
yield an average score of
“7.7,” on a 0 to 10 scale.

Volume

450

53,6

49,3

52,6

300

150

60

46,2
40

365

20

172

133

123

0

Algorithm Score

64,2

112
0

Volume

Algorithm Score
20
Methodology – A1
• OneVoice uses a proprietary quality scoring system known as
the “algorithm.” Points are assigned based on the attributes of
the story:

21
Methodology – A1
*

* See slide 65 for Strategic Messages for Evaluation

22
Methodology – A1
*

23
Strategic Messages for Evaluation – A2
Inclusion of Messages: (+25 points maximum)
The following are the strategic messages – 10 points for each message included:
•

•
•
•
•
•
•
•
•

Health & Well-Being – Philips wants to become the leading company in Health and well-being. Philips is a global
company of leading businesses creating value through meaningful innovations that improve people’s health and wellbeing
Customer-Loyalty – Philips is a people-centric company that organizes around customers and markets to give people
what they want and need
Brand Value – Philips invests in a strong brand and consistently delivers on their brand promise of “sense and
simplicity”, in their actions, products and services
Innovative – Philips delivers meaningful innovations by investing in world class strengths in end-user insights,
technology, design and superior supplier networks
Employee-focused – Philips develops their people’s leadership, talent and engagement and strives to perform
according to high performance benchmarks
Global leadership – Philips continues to invest in high growth and profitable businesses and emerging geographies to
increase revenue derived from market leadership positions
Responsible & Sustainable – Philips is committed to sustainability and focus on making the difference in efficient
energy use
Financial Strength – Philips is a company that it is financially strong, with a solid balance sheet and an increasing
ability to generate solid levels of profitability
Long-Term Strategy/Value – Philips has a solid, sensible long-term strategy which over time will lead to growth, higher
profits and better shareholder returns and therefore represents a smart long-term investment

Messaging based directly from Philips Vision 2010 Strategy, KGRN Brandbuilder and Fortune’s Most Admired Companies. Coverage
does not have to contain exact message to be scored for that message – loose interpretations apply.

24
Rijksmuseum
Strategy & Activation
Strategy:
Highlight the Philips and Rijksmuseum partnership and showcase
Philips leadership and expertise in LED lighting solutions
- Local to Global
(Lead) NL- consumer focused, locally relevant news
Group- high level, international news
- Campaign approach
- Pre-During-Post editorial calendar
- Live tweeting on location
- High quality visual assets disseminated across channels

Activation:

Multimedia news release
+ infographic

Twitter channels

@PhilipsNL
@PhilipsPR
@PhilipsLight

YouTube videos

Flickr collections

Vine video

25
2013 Group Management Commitment
Accelerate our growth and improve our performance…

1

•
•
•

Meet 2013 objectives: 4-6% growth, 10-12% EBITA,12-14% ROIC
Increase brand preference by 3% and market shares by 0.3 points
Meet our EcoVision sustainability targets and improve the lives of 1.8 billion people in 2013

2

…by executing the Accelerate! transformation…
•
•
•

Adopt a growth and performance culture that enables our people to take ownership and excel

•
•

Drive speed, simplification and excellence through End2End customer value chains

Embrace customer centricity across the value chain to win in local markets
Execute BMC growth plans that are resourced-to-win, in direct partnership between Businesses
and Markets
Embed the Philips Business System in our systems, processes, and organization; reduce
complexity costs by €900M by end of 2013

…and progressing on our strategic priorities

3

•

Build Healthcare, Lighting, and Consumer Lifestyle to global leadership performance

•
•
•

•
•

Turn around underperformers
Improve our competitive position in China and other growth markets
Drive growth and enhance our portfolio through innovation leadership

Transform Philips into a “digital” company
Invest in building new growth opportunities
Final approval Supervisory Board on 5 December
GM&C Commitments 2013
… building, protecting and promoting the Brand

1

Accelerate our growth and improve our performance…
1. Launch the Brand in an inspiring and effective way to our employees,

2.

consumers, customers, key opinion leaders and communities in relevant
channels with the ultimate objective of driving Brand Preference
Embed the new brand in the organization with impact, driving change
management and ensuring the brand is at the heart of everything we do

2

…by executing the Accelerate! transformation…
1. Drive a growth and performance culture within GM&C that engages our

2.

talent and enables everyone to take ownership and excel
Increase the accountability and effectiveness of our integrated brand &
communications network and demonstrate our added value to
businesses and markets

3

……and progressing on our strategic priorities
1. Develop and deploy an effective integrated communication strategy to

2.

build Philips’ Innovation leadership position
Drive Philips to embrace digital communications, including capability
building, development and deployment of an integrated digital
communication strategy

27
k
!

Le

Let’s talk!

Let’s talk!
Let’s talk!

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Philips Andre Manning: Planning, research & accountability

  • 1. Planning, Research & Accountability Andre Manning, Royal Philips VPRA, Amsterdam, October 31, 2013
  • 2. • • • • 150 communications professionals around the globe 25 communications professionals at HQ Amsterdam Supported by one agency across the globe This is excluding marketing communications
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  • 10. People don’t care what you say about your company. 10
  • 11. “Now it’s the people who are taking control.” Rupert Murdoch, CEO, News Corp. 11
  • 12. Everything Move Faster in Digital Economy
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  • 15. Barcelona 2010 Principles http://www.instituteforpr.org/2010/06/the-barcelona-declaration-of-research-principles/ 1. Importance of Goal Setting and Measurement : 2. Measuring the Effect on Outcomes is Preferred to Measuring Outputs 3. The Effect on Business Results Can and Should Be Measured Where Possible 4. Media Measurement Requires Quantity and Quality 5. AVEs are not the Value of Public Relations 6. Social Media Can and Should be Measured 7. Transparency and Replicability are Paramount to Sound Measurement 15
  • 16. Barcelona Principles and Philips • We set goals before we measure, before programs launch – AVEs are not used, Neither are multipliers • Impressions and clip counts are meaningless numbers on their own • Our objective is to show business results from PR • Social media is treated as simply another channel, not a strategy unto itself • Everything we do is transparent and can be done over again the same way 16
  • 18. Measurement at Philips • Communications measurement has never been more important to demonstrate the success of communications work. • When I first arrived at my new role I saw putting in place a comprehensive PR measurement system at Philips as critical. • At Philips we hold ourselves to a consistent standard through NPS scores and Key Performance Indicators (KPIs). • Consistent Measurement is part of the 21st century toolkit of the communications professional. 18
  • 19. AUGUST 2013: OVERVIEW August ’13 Total # of articles Total # of impressions Overall Quality (AMS) (from -100 to 100) Net Promoter Score (NPS)* Message Penetration (% with 2+ messages) % Positive tone *NPS is the conversion of overall quality (AMS) to a Promoter Score. N/A means no data was available for the month. Brand License refers to coverage related to Philips’ brand licensees. July ‘13 Monthly Net Change (+/-) 276 274,901,000 498 513,121,000 -222 -238,220,000 54.9 69.3 -14.4 7.7 8.5 -0.8 42% 57% -15% 68% 75% -7% 19
  • 20. Example Algorithm & NPS AMS by Top Markets • Benelux yielded the highest volume of coverage in Q4 by far, with a strong AMS. • APAC and North America had the best quality of coverage, higher than the quarterly average. 600 80 • Algorithm scores ranged from -70 to 100, the majority of which passive or promoter articles. • Conversion to NPS would yield an average score of “7.7,” on a 0 to 10 scale. Volume 450 53,6 49,3 52,6 300 150 60 46,2 40 365 20 172 133 123 0 Algorithm Score 64,2 112 0 Volume Algorithm Score 20
  • 21. Methodology – A1 • OneVoice uses a proprietary quality scoring system known as the “algorithm.” Points are assigned based on the attributes of the story: 21
  • 22. Methodology – A1 * * See slide 65 for Strategic Messages for Evaluation 22
  • 24. Strategic Messages for Evaluation – A2 Inclusion of Messages: (+25 points maximum) The following are the strategic messages – 10 points for each message included: • • • • • • • • • Health & Well-Being – Philips wants to become the leading company in Health and well-being. Philips is a global company of leading businesses creating value through meaningful innovations that improve people’s health and wellbeing Customer-Loyalty – Philips is a people-centric company that organizes around customers and markets to give people what they want and need Brand Value – Philips invests in a strong brand and consistently delivers on their brand promise of “sense and simplicity”, in their actions, products and services Innovative – Philips delivers meaningful innovations by investing in world class strengths in end-user insights, technology, design and superior supplier networks Employee-focused – Philips develops their people’s leadership, talent and engagement and strives to perform according to high performance benchmarks Global leadership – Philips continues to invest in high growth and profitable businesses and emerging geographies to increase revenue derived from market leadership positions Responsible & Sustainable – Philips is committed to sustainability and focus on making the difference in efficient energy use Financial Strength – Philips is a company that it is financially strong, with a solid balance sheet and an increasing ability to generate solid levels of profitability Long-Term Strategy/Value – Philips has a solid, sensible long-term strategy which over time will lead to growth, higher profits and better shareholder returns and therefore represents a smart long-term investment Messaging based directly from Philips Vision 2010 Strategy, KGRN Brandbuilder and Fortune’s Most Admired Companies. Coverage does not have to contain exact message to be scored for that message – loose interpretations apply. 24
  • 25. Rijksmuseum Strategy & Activation Strategy: Highlight the Philips and Rijksmuseum partnership and showcase Philips leadership and expertise in LED lighting solutions - Local to Global (Lead) NL- consumer focused, locally relevant news Group- high level, international news - Campaign approach - Pre-During-Post editorial calendar - Live tweeting on location - High quality visual assets disseminated across channels Activation: Multimedia news release + infographic Twitter channels @PhilipsNL @PhilipsPR @PhilipsLight YouTube videos Flickr collections Vine video 25
  • 26. 2013 Group Management Commitment Accelerate our growth and improve our performance… 1 • • • Meet 2013 objectives: 4-6% growth, 10-12% EBITA,12-14% ROIC Increase brand preference by 3% and market shares by 0.3 points Meet our EcoVision sustainability targets and improve the lives of 1.8 billion people in 2013 2 …by executing the Accelerate! transformation… • • • Adopt a growth and performance culture that enables our people to take ownership and excel • • Drive speed, simplification and excellence through End2End customer value chains Embrace customer centricity across the value chain to win in local markets Execute BMC growth plans that are resourced-to-win, in direct partnership between Businesses and Markets Embed the Philips Business System in our systems, processes, and organization; reduce complexity costs by €900M by end of 2013 …and progressing on our strategic priorities 3 • Build Healthcare, Lighting, and Consumer Lifestyle to global leadership performance • • • • • Turn around underperformers Improve our competitive position in China and other growth markets Drive growth and enhance our portfolio through innovation leadership Transform Philips into a “digital” company Invest in building new growth opportunities Final approval Supervisory Board on 5 December
  • 27. GM&C Commitments 2013 … building, protecting and promoting the Brand 1 Accelerate our growth and improve our performance… 1. Launch the Brand in an inspiring and effective way to our employees, 2. consumers, customers, key opinion leaders and communities in relevant channels with the ultimate objective of driving Brand Preference Embed the new brand in the organization with impact, driving change management and ensuring the brand is at the heart of everything we do 2 …by executing the Accelerate! transformation… 1. Drive a growth and performance culture within GM&C that engages our 2. talent and enables everyone to take ownership and excel Increase the accountability and effectiveness of our integrated brand & communications network and demonstrate our added value to businesses and markets 3 ……and progressing on our strategic priorities 1. Develop and deploy an effective integrated communication strategy to 2. build Philips’ Innovation leadership position Drive Philips to embrace digital communications, including capability building, development and deployment of an integrated digital communication strategy 27